Value Microcaps Motherboard

[michael t]

zen-if you're asking if they should have shown a tax benefit related to this years income, the anwser is no.

For tax purposes this years income would have resulted in two tax transactions. One would have recorded tax expense and decreased the tax asset. The second would have eliminated the tax expense and decreased the allowance against the tax asset.

The net result is the tax asset would have decreased and the offsetting allowance would have decreased by the same amount. The net effect is a balance sheet transaction. Because these are offsetting accounts you don't see the impact.